Fannie Mae Announces Offering of New Issue 3-Year Benchmark Notes(R) Due September 23, 2013 and Auction (Reopening) of 5-Year Benchmark Notes(R) Due July 28, 2015

WASHINGTON, August 3, 2010 - The following is being issued by Fannie Mae (OTC Bulletin Board: FNMA)

                          3-Year                      5-Year (Reopening)
    Pricing/Auction
     Date             August 4, 2010              August 3, 2010
    Settlement Date   August 6, 2010              August 5, 2010
    Maturity Date     September 23, 2013          July 28, 2015
    Issue Size/
     Reopen Size      TBD                         US$1 billion
    Current
     Outstanding      N/A                         US$3 billion
    Coupon            TBD                         2.375%
    Payment Dates     Each September 23rd and     Each July 28th and January
                      March 23rd, beginning       28th, beginning January 28,
                      September 23, 2010          2011
    CUSIP             31398A2S0                   31398AU34
    Listing           Application will be made    Application will be made
                      to list the securities      to list the securities
                      on the EuroMTF market of    on the EuroMTF market of
                      the Luxembourg Stock        the Luxembourg Stock
                      Exchange                    Exchange
    -------           -----------------           ------------
    Auction Time      N/A                         10:30 a.m. - 11:00 a.m. EDT
    -------           ---                         -------------

For the new issue, Banc of America Securities, J.P. Morgan & Co., and UBS
Securities LLC are the joint lead managers. The co-managers include, Barclays
Capital Inc., Blaylock Robert Van LLC, Credit Suisse Securities (USA) LLC,
Jefferies & Company, Inc., Morgan Stanley & Co., and M.R. Beal & Company.

Fannie Mae exists to expand affordable housing and bring global capital
to local communities in order to serve the U.S. housing market. Fannie Mae
has a federal charter and operates in America's secondary mortgage market to
enhance the liquidity of the mortgage market by providing funds to mortgage
bankers and other lenders so that they may lend to home buyers. Our job is to
help those who house America.

This press release does not constitute an offer to sell or the
solicitation of an offer to buy securities of Fannie Mae. Nothing in this
press release constitutes advice on the merits of buying or selling a
particular investment. Any investment decision as to any purchase of
securities referred to herein must be made solely on the basis of information
contained in Fannie Mae's applicable Offering Circular, and that no reliance
may be placed on the completeness or accuracy of the information contained in
this press release.

You should not deal in securities unless you understand their nature and
the extent of your exposure to risk. You should be satisfied that they are
suitable for you in the light of your circumstances and financial position.
If you are in any doubt you should consult an appropriately qualified
financial advisor.

Benchmark Notes is a registered mark of Fannie Mae. Unauthorized use of
this mark is prohibited.

Katherine Constantinou, Fannie Mae, +1-202-752-5403